Net Worth & Financial Freedom Index

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With the new ability to include any asset into StocksCafe, we can now compute some interesting numbers useful to almost all investors. I have created a clean-cut dashboard page to display these numbers.

Net Worth
I hope it is obvious why as an investor you need to know your net worth. In case it is not, you might want to google it or read these articles: here, here and here.

Once you have included all your stocks, assets, and liabilities into StocksCafe, your net worth can easily be computed. You might ask, how can I input my liabilities? You can simply input negative price/value to an asset and that would make it a liability.

Net Worth = Total Portfolio (on this page) + Total Other Assets (on this page)

Financial Freedom Index
While knowing our net worth is important, it does not tell us how far are we from achieving financial freedom (my assumption is that many investors invest to achieve financial freedom).

Hence I decided to come up with a number that can measure how far you are from achieving your financial freedom. I would like to call this the “Financial Freedom Index”.

Financial Freedom Index (%) = Annual Income / Annual Expenses

Passive Income = “Dividends projected (for next 12 months)” + “Upcoming payments (for next 12 months)”

Annual Expenses = Based on your settings under “Financial Freedom Index”. It is defaulted to SGD 60,000.

How do your numbers look? The closer your FFI is to 100, the closer you are to popping that bottle of champagne to celebrate your freedom!

As always, I am happy to receive feedback and suggestions. In this case, I’d particularly like to hear what other numbers you believe are important to investors and should be included in the dashboard.

Happy investing!

Bonus: You can now auto-export (via email) information entered for other assets by updating the settings under “Regular Export Email”

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Evan Koh

Links

Website:
StocksCafe

Knowledge Base:
StocksCafe Academy

YouTube Tutorials:
StocksCafe Youtube Channel